Foreign media reports indicate that while the crypto market has recently shown signs of improved liquidity, the increase in new funds has not been proportional, and market risk appetite remains insufficient. The article argues that while both the traditional financial system and on-chain funding are improving, these changes have not yet translated into stronger price drivers.
Over the past two weeks, the total market capitalization of the crypto market has hovered around $2.15 trillion. This followed four consecutive weeks of declines, with the market losing over $550 billion. Against this backdrop, the stabilization of liquidity is seen as a noteworthy development.
US money supply and stablecoins rebound in tandem.
The article mentions that the US money supply has risen to a new high of $22.8 trillion, an increase of over $400 billion since the beginning of 2026. According to the article, increased liquidity within the system typically supports risk assets.
On the blockchain, the total market capitalization of stablecoins saw a net inflow of over $300 million in the past week, ending four consecutive weeks of decline. Based on this, the article concludes that some funds are re-entering the crypto ecosystem, rather than remaining on the sidelines.
- The US money supply rose to $22.8 trillion.
- More than $400 billion has been added since the beginning of the year.
- Stablecoins saw a net inflow of over $300 million in a week.
ETF fund flows have yet to form a unified force.
However, the article argues that improved liquidity does not equate to a confirmed market bottom. A more critical issue is that investor sentiment for chasing rallies has not yet significantly recovered, particularly in high-risk sectors that previously drove rebounds, where strong follow-through buying has yet to emerge.
The article mentions that trading volume of BTC-denominated altcoins has been weakening since 2021, indicating that the rotation of funds between Bitcoin and other tokens has slowed significantly. This means that even with new liquidity entering the market, it hasn't spread to higher-risk assets as quickly as it did in the previous cycle.
ETF data also showed divergence. The article stated that only Morgan Stanley recorded a net inflow of over $10 million this week, with purchases of $25.8 million in BTC; other major institutions collectively saw a net outflow of approximately $201.7 million.
- Morgan Stanley saw a net inflow of $25.8 million this week.
- Other major institutions saw a combined net outflow of approximately US$201.7 million.
Bitcoin returns to key range, but retail investors remain cautious.
The article also points out that Bitcoin has returned to the historically high $60,000 range, but retail trading activity has not increased significantly. Compared to earlier in this cycle, the same price range now corresponds more to cautious observation rather than concentrated buying at higher prices.
In summary, foreign media believe that the current positive signals in the market mainly stem from improved liquidity rather than a comprehensive recovery in risk appetite. The expansion of stablecoins and increased money supply indicate an improved funding environment compared to the previous period; however, insufficient retail participation, uneven demand for ETFs, and weak rotation among altcoins suggest that the market is still some distance from forming a clearer bottom signal.
